Second BNPP AM infrastructure debt fund closes with €280m
BNP Paribas Asset Management has announced the first closing of its second European junior infrastructure debt fund with €280m (£234m), from eight European and Asian institutional investors.
The first vintage of the fund has invested more than €300m in several dozen European infrastructure projects, and the second iteration of the fund will apply the same financing policy, investing in sub-investment grade infrastructure debt with a preference for operational assets.
The fund will have an ESG focus, and will invest in projects across continental Europe which support the energy and digital transition.
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“Infrastructure debt is an asset class that has proven its resilience and ability to contribute to the ecological transition and digitalisation of the European economy,” said Karen Azoulay, head of infrastructure debt at BNP Paribas Asset Management.
“Debt Fund II is a vehicle that allows investors access to diverse portfolio opportunities and direct access to sub-investment grade infrastructure debt projects.
“Following the success of the first vintage, we are proud to continue this momentum with the development of our range with this second fund, which strengthens our positioning in the market.”
The fund has a target size of between €500m and €750m and a hard cap set at €1bn.
The weighted average maturity amount target is between six and eight years.
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“Following the success of the fund Junior I, we are happy to announce the first closing of fund Infra Debt Junior II with a significant amount,” said Stéphanie Passet and Vincent Guillaume, co-heads of infrastructure debt at BNP Paribas Asset Management.
“This first step shows the increased interest of investors for the infrastructure debt and particularly in the strategy proposed by BNP Paribas Asset Management.
“The launch of this second vintage strengthens our presence in the junior infrastructure debt market and highlights our ability to support the energy and digital transition of the European economy through financing various infrastructure projects on a European scale.”
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